Poland to spend EUR 1.2 bln on aid to energy-intensive firms

The Polish government will allocate PLN 5.5 billion (EUR 1.2 billion) to mitigate high gas and electricity prices for energy-intensive firms in 2023-2024, the Prime Minister's Office announced in a statement on Tuesday.

Although the current market prices of energy and gas are falling, many companies from the industrial sector are bound by long-term contracts with suppliers, based on much higher prices from the previous year, which poses a threat to their financial liquidity, according to the statement.

The government's financial support will be available to enterprises that meet the energy-intensity condition, that is the costs of electricity and natural gas accounted for at least 3 percent of their production value in 2021, the statement said.

The aid will help them maintain liquidity, profitability, jobs and production capacity, it added.

"Around 3,000 enterprises will be able to benefit from the aid, according to the statement.

In early June, the Polish government agreed to trade unions' demands to offer further support to energy-intensive companies this year amid an ongoing energy crisis. The Tuesday-announced programme is a follow up of last year's assistance for 280 energy-intensive firms.

Prices of energy commodities rose after Russia invaded Ukraine in February 2022 causing a number of energy-intensive Polish companies to struggle with energy costs.

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